You hear about mis-sold mortgages a lot in the last few years so what exactly does it mean? There are various different ways in which you may have been mis-sold a mortgage but the main decided is whether your lender or adviser treated you fairly. I have listed a few of the most common breaches, this may help you decide if you may have a claim. If you feel you have its then worth seeing some specialist advise from companies like Mis-Sold Mortgage Expert who will be able to advise further.
In present times debts are a common thing with most house holds, so it's no surprise this is one of the most common ones. If you had debts at the time of apply for your mortgage, you were advised to consolidate those debts into your mortgage then you SHOULD have also been informed of the additional costs you would nee dto pay on top due to the increased payment period.
There are situations in which consolidating your debt would have been good advice. The most obvious being if for example your credit card is charging extortionate interest rate then consolidating it into your mortgage mean paying less. The key thing to remember is if you are advised to consolidate debt when your financial situation doesn't indicate to do so then this could mean your lender or broker could be at risk of mis selling mortgages.
Extend Your Mortgage Term
This is one of the increasingly common problem for the length of time a mortgage is being paid to be a reason for a mis-sold mortgage claim. A lot of people may not even be aware that their mortgage period had not been set up correctly or been extending. If it was not explained to you that by accepting the longer term with lower monthly payments but the interest liability would increase as a result of the extended payback period. Can You Afford Your Mortgage? It may not be your fault if you cannot afford your mortgage. Did you know it is the responsibility of your broker to ensure it is affordable for you. This will make up of income and current financial situation.
If you already have a lot of debt or you were advised to borrow large amounts of capital it is entirely possible that their repayment scheme was just impossible to maintain in current financial state. Cases like these could constitute as negligence from broker who advised you.
It is your brokers responsibility to tell you your money would reduce the value of your home if you were to approach a broker to raise capital. This is money you are borrowing coming from the equity in your home and this would constitute as a mis-sold mortgage, the debt would be likely to be paid back over a longer period of time in comparison to a personal loan.
If you are reading this and wondering if you have a mis-sold mortgage claim on your hands speak to the experts quickly to find out.